Women Will Pay More for Long Term Care Insurance

Long term care insurance is taking a step back from gender equality.  The American Association for Long Term Care Insurance (AALTCI) says unisex insurance rates are coming to an end because women are far more likely than men to need long term care.  As a result, the AALTCI is encouraging women to lock in a low long term care insurance rate before the increase occurs.

Long term care insurance agents reportedly paid over $6.5 billion in 2012, and nearly two thirds of those claims were issued to women.  A typical 55 year old woman can arrange to pay $150 a month for $170,000 in long term care insurance benefits.  These are currently the same rates that a 55 year old man would pay, but AALTCI President Jesse Slome says upcoming changes to the insurance system will charge women an additional 20 to 40 percent more than their male counterparts.
“Dementia, cancer, fractures, stroke, osteoarthritis and hip fractures or replacements are the most frequent reasons women require long term care insurance benefits.”

Slome says all women can qualify for current low rates regardless of their marital status as long as they are less than 65, and have yet to qualify for Medicare.  The AALTCI advises women to work with an insurance professional who understands the most credible firms in the industry.  Long term care insurance is different from other insurance plans in that this policy is a onetime purchase, which prevents customers from switching to different companies year after year.  Slome says women should begin planning ahead sooner rather than later to keep all options available before selecting a provider.

“Plus long term care insurance tends to cost between eight and 10 percent more for every year you delay.”

The rate changes will be implemented in the first half of this year.